Clayton Williams increases capital spending for 2005

Onshore e&P Clayton Williams Energy (ticker: CWEI) announced this morning that it is increasing its capital budget for 2005 by 17% to 145.2 million.   CWEI was a part of the free cash flow table we posted on June 29.  With the increase the company went from an expected net positive free cash flow producer to one of the companies that will probably have to raise money to support their new plans.

It should be pointed out that we do not know what price deck is being used for the cash flow estimate. It is possible that the price deck is very conservative or below that of the futures. It is possible that they will have the cash flow to support the new game plan.  Currently, they are an estimated $15 million short.   Not too far.